I'd like to invite folks to post CI problems they face, and tap into the combined might and expertise of the intelligence gurus assembled.
I'll begin this discussion with a question I got late yesterday afternoon from a fellow CI professional.
We are looking at a hypothetical company listed on the London stock exchange. The company has been under some stress and we want to know whether this company will be able to handle debt payments. We have a 3 page Equity Research report on the company with several years of financial measures.
We have several questions:
1. For those of us in the US, where would we go for more detailed financial reporting data on this company. Hopefully we'd like historical data for several years, and would like Income Statement, Balance Sheet, and Cash Flow Statements. It would be nice if the data was available electronically and free.
1a. Are there differences in terminology that would be important. For example...Revenue in the US is generally referred to as Turnover in other countries. Certain financial ratios common in the US may not be used internationally.
2. What financial measures should we look at to see if this company will be able to service its debt?
3. How do you calculate a "burn rate" to estimate ability to pay?
I know what I concluded on this particular company ... that it showed ability to pay, but that there were inconsistencies in its financials that were troubling and made me believe their reporting was manipulated to show better liquidity than the company really had. Obviously, the "right" answer will have to wait to see if this company is able to survive. But I wanted to get some discussion going to see how others would attack this problem and where you'd go to gather more information.